Taxes and Accounting
Long Term Care Insurance for Business Owners and
Executives: Tax Benefits Often Overlooked
Edited by Debra Tone
Tue, 24 Feb 2009, 06:29:25 EST
Welcome Relief for the Hard-Pressed Business Sector
KIRKLAND, Wash., Feb. 24 (SEND2PRESS NEWSWIRE) -- For people in business, there's good news on the long
term healthcare front. They can often insure themselves for less, thanks to favorable tax legislation. "Most owners or
executives can use company dollars for a tax-deductible plan for themselves, their spouse, and dependents," says
Denise Gott, Chairman of the Board of LTC Financial Partners LLC (LTCFP), one of America's most experienced
long term care insurance agencies. "This is huge, but most business people miss out for lack of knowledge."
For millions of owners and executives, the dollar savings are threefold (when
all conditions are met):
(1) The LTC policy is paid for, often completely, using company funds; and
the payments are treated as a tax-deductible business expense.
(2) The premiums are not usually added to the business person's income
(with some exceptions), adding no personal tax liability when the conditions
(3) The benefits, when claimed, are tax-exempt.
"For most companies, even small ones, this can make a difference of
hundreds to many thousands of dollars a year," says Gott. "Benefits for medium to big companies can range into the
hundreds of thousands to millions." Associations and non-profits also stand to benefit.
The benefits apply, in varying ways, to sole proprietorships, partnerships, C-corporations, S-corporations, and
limited liability companies. The business entities have the choice of providing the tax-favored insurance just for the
owners and their spouses and dependents; or to selected executives important to the organization's success (in an
"executive carve out"), or to all employees. When all employees are to be covered, the business has the choice of
paying all or some of the